Total, National Oil fight over oil supply contract

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High Court is set to rule on a case in which Total Oil Kenya has taken National Oil to court over two deals with the government owned marketer which it says resulted to losses.

According to Total Oil the government oil marketer failed to honour a contract to supply 7,000 metric tonnes of gas oil in a private purchase outside Kenya Open System tender.

In the case before High Court Judge Jacqueline Kamau Total Oil, failure by National Oil to honour the contract and by increasing the price per barrel without notice led to losses of Kshs.16 million in the first deal and is overall asking for over 70 million.

Total Oil wants the court to order the government owned marketer to pay for defaulting in delivery of the first consignment and charged a penalty of more than Kshs.200,000.

“Without notice to the plaintiff, the defendant unilaterally and arbitrary abandoned the mode covenanted and invoiced the plaintiff at the price mean of 95.3$ as opposed to the contractual price of 91.5$ per barrel. This is unjustified and illegal,” Total said in a statement signed by Total’s supply manager Mary Muiruri.

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Author: Samuel Kamau Mbote

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